MEANING OF AUDIT PROGRAMME
The preparation of an audit programme is an important part of Audit Planning. Audit programme is a written plan wherein a complete outline of audit work is recorded. An auditor commences his audit work on the basis of the outline, i.e., Audit Programme. This outline is prepared well in advance by the auditor.
Just as Civil Engineer prepares a plan for the construction of a Dam and then all work is done according to the plan in a systematic manner to get success, similarly, an auditor also prepares the outline of audit work and on that basis distributes the work among his staff in order to complete the audit work in a systematic and satisfactory manner. This is called the Audit Programme.
To sum up, An Audit Programme is a written scheme (the plan of action) designed by the auditor, to see that all the books of accounts have been audited properly, the work is over in time, and there is uniformity in the audit work. Every person entrusted with part of the audit work has to put his signature on the part of the work completed by him.
DISADVANTAGES OF AUDIT PROGRAMME
The following disadvantages of Audit Programme can be stated:
(1) Mechanised Work-
Audit work becomes mechanised just like
clerical work, where monotony creeps in. The staff is not able to do the work
efficiently and carefully and changes in the system of internal control is not
heeded too.
(2) Lack of Personal Liberty to Audit Staff-
The audit programme
lessens the interest and zeal of the audit staff. The audit staff has to stick
to the audit programme as given by their boss-the auditor. The staff does not
think it necessary to do any
independent thinking. Thus, their initiative and drive in exploring new ways of
performing the work in hand dampen, rather in hand comes to an end. They do
not get any opportunity to practice it.
(3) Decrease in Moral Duty-
Auditing creates a moral impact
on the employees of the concern under audit. An audit programme lessens the
importance of an audit because these employees come to know the scope of the
audit. They thereby, become careless.
(4) No Detection of Frauds and Errors-
The audit programme
affects adversely the objects of auditing. Errors and Frauds are detected only
by a careful and deep examination of the account books and supportive documents.
When an employee of the auditor does audit work as per the audit programme, he
has limited time at his disposal and he fails to detect the cleverly committed
errors and frauds by the employees of the concern.
(5) Lack of Elasticity-
This is an age of change. Daily new
problems originate under the changed circumstances. Such problems are not
covered by these audit programmes, since these programmes cannot be changed so easily.
Further, changes made in the audit programmes to cope with the changed circumstances,
require a lot of time the create a part of the auditor. This changes a lot of
difficulties and involves a waste of time too.
(6) Expensive Method-
Preparation of an audit of time.
Secondly, its implementation programme entails a lot and also requires time, which
increases the expenses of the concern. Thus, commencing audits on the basis of audit
programmes proves to be an expensive practice.
